Economics
GDP and Welfare
Practice questions
If healthcare spending rises because of a pandemic why does GDP growth alone not prove an improvement in welfare?In which situation may most households experience falling real income despite rising per capita GDP?If a larger share of household services begins to be purchased from the market measured GDP may rise. How is this related to welfare?When is the positive relationship between GDP and economic welfare likely to be stronger?A country's real GDP rose by five percent but the estimated cost of pollution treatment rose by seven percent. Which conclusion is more appropriate?Why are life expectancy and literacy combined with GDP when assessing human welfare?If GDP rises in a country but access to safe drinking water declines which conclusion is correct?If an old house is sold and an agent receives commission what will be included in current GDP?What is a likely welfare effect of jobless GDP growth?In which example may actual welfare exceed the value recorded in GDP because of a positive externality?If production rises in a country but workplace accidents also increase sharply, what conclusion is appropriate?If improved public transport reduces private fuel consumption and saves time, how may GDP and welfare change?Income distribution in a country is so unequal that the top ten percent receives most income. What is the problem with relying only on per capita GDP?If a country replaces free public education with paid private education while the quantity of education remains the same, why may measured GDP rise?In which situation would GDP growth not be considered sustainable welfare growth?Why is the value of old assets destroyed by a natural disaster not directly deducted from GDP?If both real GDP and per capita GDP rise but the poverty rate remains unchanged, what does this indicate?If a production process harms workers' health but increases demand for medical services, what may GDP show?If crime falls and demand for private security services declines in an economy, what is possible?If real output rises by eight percent and the monetary estimate of environmental damage rises by two percent, what should be done in welfare analysis?